Family trust structure
Michael, 50, Sydney, NSW
- Wanted to upgrade family home in Sydney
- Exchanged on a new home without a formal approval in place or having sold the current home
- Complex borrowing structure with business income and family trust distributions
- Organised a bridging loan which allowed Michael and his family to complete the purchase of their new family home
Challenges and concerns
Due to Michael having quite a complex income and family trust structures, it was going to be very difficult to get an approval via the traditional retail banking pathways. To add extra difficulty to the situation, Michael had exchanged on a new home without selling his current home, something that led to issues as the property market had begun to soften.
“Before I engaged Orium I was working with bank specialists who were essentially brokers for the bank, who didn’t feel had my full interest at heart. After I began working with Orium I realised that there is so much value in working with a good mortgage broker, who has the knowledge and experience to work with the banks on your behalf”.
Michael was looking to upgrade his family home in Sydney’s Northern Suburbs. He exchanged on a property and was looking to sell his existing home, however, unfortunately the property market softened creating challenges with his ability to purchase the new property.
Working with Orium
Michael engaged Orium who were able to organise a short-term bridging facility as well as find a lender for his family home upgrade.
“There was a situation where the market tanked and Orium took responsibility for the outcome without me having to do anything – they keep me informed and I always felt they had the contacts and experience to get the deal over the line”.
Michael works as a partner of a law firm and receives income via his business into a family trust. This created hurdles for many retail banking departments when it came to assessing his total earnings.
“With my trust income being distributed to different people, it’s important to find a bank that are comfortable and able to include all those distributions. Luke at Orium was able to assist with this by partnering me with a private banking team.”
“Working with Luke and his team provided such a seamless approach in connecting myself with the lender. It really takes the pressure out of knowing what banks really want and having that middle person to deal with the bank on your behalf is really helpful. They have a complete understanding of all aspects to ensure they can get the best deal over the line for you. Banks have become less customer centric with a focus on their own risk. But the Orium team really focus on their customers and it’s an important part of what they do.”
We educated Michael through the process and provided regular updates to ensure he was comfortable as possible, as we knew he had a lot riding on the outcome.
“Having a mortgage broker saves time and is helpful in terms of filling out forms and advice on what rates are competitive. Another thing I really value is the ability Orium has to build relationships with the bank. I was able to gain a close relationship with the St George Private Banking team, which I think was crucial in getting my deal over the line. With Luke’s help, the bank were able to gain an understanding of my income situation which gave them confidence to lend to me.”
“Orium were always available to answer any questions, unlike the bank who have limited hours.”
“Before working with Orium, previous banks had refused to understand and acknowledge my income splitting for tax reasons, so having Orium working for me in the background to educate the bank on my situation and to negotiate a sharp rate – was priceless.”
Despite Michael’s current home falling in value since he purchased the new home, our team were able to organise a short-term bridging facility and finance the new purchase via St George Private. We also regularly worked with the bank to ensure Michael’s interest remains competitive.
Find out how we can help you
“Ever since I started working with Orium they have always been proactive in renegotiating my interest rates down so that I was always getting the best rate.”
Hear from Michael
“What surprised me was the ease at which everything was done such as setting up loans, restructuring and still being able to have an open dialogue with someone senior at the bank.”
Speak to our team today to see how you can achieve your financial goals.
One of our mortgage brokers will contact you to discuss the following:
- Get to know your financial objectives
- Help you to understand your borrowing capacity
- Take you through how we can assist you with your finances
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